Jonathon Berman, (202) 495-3033, joanthon.berman@sierraclub.org
Richmond, VA -- Today, the Sierra Club is filed a petition with the Virginia State Corporation Commission stating that Dominion Virginia Power’s (DVP) deal with the Atlantic Coast Pipeline for capacity to ship fracked gas requires the Commission's prior approval.
Dominion Resources, DVP’s parent company, owns a 48% share of the proposed Atlantic Coast Pipeline, which would carry fracked gas into Virginia and North Carolina. DVP has struck an internal agreement with Atlantic Coast Pipeline, LLC to purchase large quantities of capacity on the pipeline for a twenty-year term.
“This agreement should not move forward until Virginians are given the opportunity to have their voices heard,” said Kate Addleson, Director of Sierra Club’s Virginia chapter. “Energy deals like this can only be approved if they will benefit Virginians, but the only thing Dominion has proved thus far is that it’s trying to shut the public and its own ratepayers out.”
Virginia’s Affiliates Act was established to ensure that all business deals between utilities and their corporate affiliates are in the public’s interest. Should a utility seek to conduct business with any subsidiary or corporate affiliate, it must first file an application with the State Corporation Commission. The Commission must then review the transaction to ensure that it will actually benefit Virginians. Commission proceedings under the Affiliates Act are open to participation by affected parties.
In the case of the Atlantic Coast deal, every organization involved is fully or partially owned by Dominion Resources or one of its subsidiaries. Therefore, the Affiliates Act requires the Commission to review and approve the arrangement before it can take effect. However, DVP has failed to submit the deal to the Commission for formal review and approval, indicating that it has no plans to do so.
Yet, the Commission’s review and approval is critical in this case. The Sierra Club has serious concerns that DVP’s deal with Atlantic Coast will incur exorbitant costs while cheaper alternatives are already available. Furthermore, the deal could incentivize Dominion to rely more heavily on gas in the coming decades at the expense of smarter and cleaner renewable options and efficiency resources.
“As part of its plan to bring more fracked gas into the Commonwealth, Dominion Virginia Power is seeking to acquire twenty years’ worth of pipeline capacity from its own corporate affiliate without prior Commission review. This is a clear violation of the Affiliates Act,” said Andres Restrepo, an attorney with the Sierra Club. “DVP cannot be permitted to sidestep the law’s requirements. This agreement must not be given legal effect unless and until the Commission closely reviews and approves it.”
Today’s petition was filed with the Virginia State Corporation Commission, and can be viewed here.
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